You actually tell foreigners that you are 'from the Netherlands'? I think quite a majority of the Dutchies say they're 'from Holland'. At least I do :p
You are right, officially it's called the Netherlands. But I don't think anybody will ever think that you actually live in either of the two provinces when it says Holland next to your name. Unless you somehow feel offended, I see no point in whining about it. After all, you always have the flag ;)
Today I noticed that although I set my country at the Netherlands and it's accurately called the Netherlands in online chess and this forum that somehow it's called Holland in live chess.
Holland isn't a country. Although the name Holland is often used for the Netherlands, it's not correct (google it, look in a dictionary). Holland is only two out of the twelve provinces of the Netherlands. I'm not living in Holland and would like it that my country is accurately called the Netherlands in live chess. Besides it's just weird to call a country by two of its provinces ;).
ps. Soccer/football is the only exception, but this is a chess site isn't it ;).